In south-east Queensland, water bills generally include three parts: the bulk water price, retailers' charges for water distribution and retail services to the premises and retailers' charges for providing sewerage services to the premises.

Quensland Competition Authority chairman Roy Green said the draft report recommending bulk water prices for south-east Queensland for 2018-21 had been presented to the state government.

"Under the first option, the current bulk water price for the eight councils paying the common price - Brisbane, Gold Coast, Ipswich, Lockyer Valley, Logan, Moreton Bay, Scenic Rim and Somerset - of $2.82 per kilolitre - would rise by 3.2 per cent in 2018-19 and 2.5 per cent in 2019-20," Professor Green said.

"Under the second option, the common price applying to the group of eight councils would rise by 2.8 per cent in each of the three years.

"A common price of $3.06 per kilolitre would apply to all 11 councils by 2020-21."

The second option would result in more gradual increases for Sunshine Coast, Noosa and Redland City councils over three years rather than two.

The Queensland government took over control of the bulk water supply from the region's councils in 2008.

To reduce the price impact of significant investments made in water infrastructure in response to low water availability, the government decided that bulk water price increases should be phased in over time.

To avoid an initial sharp price rise, prices were set to initially recover less than the cost of supplying bulk water, and gradually repay the deficit until 2028.

The QCA estimated Seqwater should be allowed to recover $8.1 billion in costs between 2018 and 2028.

The QCA completed its first full review of Seqwater's bulk water prices in 2015 and recommended prices until June 2018, with the Queensland government setting prices that were consistent with the recommendations.

People can comment on the draft report until January 31 at www.qca.org.au.